The present invention relates to systems and methods for processing payments for goods, and more particularly to systems and methods for the local processing of payments for remotely purchased goods.
While direct, point-of-sale marketing represents the single largest channel of retail sales, catalog sales have in recent years experienced extraordinary growth. Recent reports indicate that 53 percent of all American adults purchased merchandise by catalog in calendar year 1996, and that catalog sales will generate $76.8 billion dollars of revenue in 1997.
Point-of-sale marketing, typically represented by conventional direct-to-customer sales in retail stores, provides buyers with many well-established benefits. Such retail sales permit customers to select goods in a hands-on manner. The customer experiences the xe2x80x98instant gratificationxe2x80x99 associated with receiving the purchased goods immediately upon completion of the sale. Further, point-of-sale marketing provides customers with substantial flexibility in payment options, such options including cash, credit and debit cards, lay-away plans, and other options known to those skilled in the art.
Drawbacks to conventional point-of-sale marketing include a selection that is typically limited to available retail stock. Further, point-of-sale marketing requires a customer to travel, sometimes at inconvenient times or for inconvenient distances, to examine and select products at the retail establishment.
In contrast, catalog marketing typically provides customers with a broader range of selections while enabling a customer to shop from the convenience of their home or office. The instant gratification of store shopping is exchanged for slightly delayed but convenient delivery to a location specified by the consumer. One significant drawback of catalog shopping, however, is the lack of flexibility provided in payment options.
The majority of catalog purchases are conducted by telephone and paid for by credit card. Many consumers, however, do not feel secure in providing their credit card number to a xe2x80x98strangerxe2x80x99 over a telephone. Other consumers may not wish to assume the revolving debt often associated with credit card use, while still other consumers may not even possess a credit card.
While catalog purchases can be and often are paid for by check, this presents a somewhat distracting and unwieldy method of payment for the consumer. In addition to physically writing the check, the buyer must mail the check to the catalog order processing department, and include either an order form (if ordering through the mail) or an order number (if the order was previously placed by telephone). The buyer thus assumes not only the delay of product shipping, but the further delay associated with the mailing, and perhaps clearing, of the check. Money orders present similar difficulties to checks, with the additional inconvenience of having to purchase the money order itself.
Cash payments are typically not an option for a catalog purchase. It is known to be very unsafe to mail cash currency through public mail systems, and many catalog order processors do not even have the capability to handle cash.
Some methods of retail sales are known which attempt to merge the benefits of both catalog and point-of-sale marketing. British Airways has implemented a program whereby in-flight airline passengers can order goods from a catalog, pay for the goods while on the plane using credit cards or cash, and subsequently receive the purchased goods at the designated delivery location. The selection, however, is limited to the catalog(s) offered through the program.
Many programs are known for door-to-door sales of catalog goods, with payment being collected by the seller at the time of sale or delivery (if the goods are hand-delivered). Amway, Fuller Brush, Avon, and Mary Kay are examples of companies that employ door-to-door catalog ordering and payment programs. These programs, of course, suffer from the shared drawback of offering a very limited catalog selection. Such programs may offer one or two proprietary and topic-focused catalogs for the customer to select from. This is in contrast to the thousands of direct marketing catalogs generally available to buyers.
Some retailers have established cooperative combinations of both retail store and catalog divisions. JCPenney, one of the largest retail store and catalog marketers in the United States, employs a system wherein customers can conveniently shop interchangeably between JCPenney stores and the JCPenney catalog. That is, consumers can make a catalog purchase while at a retail store, and/or receive a catalog purchase through a retail store. These types of systems, however, suffer from the same drawbacks described above; that is the limited selection of catalogs from which the customer may order at any given retail store. Further, to the best of applicant""s knowledge, catalog orders placed remotely must be paid for remotely, and do not accrue the flexible payment options available to those who travel to and shop within the store.
Warehouse type retailers are known wherein customers travel to a large retail store to browse both in-stock goods and store catalogs. Goods selected for purchase can be identified by entry into a computer order/inventory system, which checks inventory, optionally accepts a credit card payment, and directs the customer to a pick-up counter to receive the goods. Service Merchandise Co. is one example of such a retailer. Such stores, while perhaps providing a larger-than-normal selection of goods, still are limited to providing those goods maintained in stock and/or available through their individual store catalog.
U.S. Pat. No. 5,434,394 to Roach et al. (Roach) shows an automated order and delivery system wherein a point-of-sale computer system is enabled to cooperate with a warehouse computer system to facilitate the shopping, product delivery and check-out processes. In Roach, the point-of-sale system is used to develop order and delivery information at the point-of-sale, and transmit that information to the warehouse system. The warehouse system is then operated to facilitate fast product delivery and/or shipping. The purchase and delivery information is communicated to the check-out register to facilitate checkout. While facilitating in-store shopping, Roach does not enable a buyer to select from a wider selection of goods than is typical in a retail store environment.
Retail stores are known wherein customers are invited to shop from catalogs, placing their orders for catalog goods through catalogs made available at the retail location. To the best knowledge of applicant, such stores operate by collecting customer orders through local point-of-sale systems, collecting funds directly from customers, and subsequently placing orders and making payments to the catalog merchants. As will be appreciated, the selection of catalogs from which a customer may select merchandise will likely be very limited to those provided by the retailer. Further, such a system requires that a customer travel to the store to browse catalogs and select goods.
On-line systems are known wherein a shopper may connect, for example over the Internet, to an on-line catalog retailer. The customer may purchase goods, and submit payment through an electronic interchange of information, or by telephone or mail. Such systems suffer from the drawbacks of conventional catalog ordering with respect to payment options. That is, a consumer must either provide a credit card to a remote xe2x80x98strangerxe2x80x99, suffer the inconvenience of writing and mailing a check, or deal with the complex electronic payment systems described below.
Electronic payment systems are known for facilitating payments for electronic transactions. First Virtual, for example, permits buyers to establish credit card-based accounts, and to use a personal identification number to submit payment for an electronic transaction. The credit card payment is then handled in an off-line manner by First Virtual. Such systems have the drawback of being complicated to establish and use, as well as ultimately requiring the use of a credit card. Further, such payment systems are not universally accepted amongst merchants.
The use of automatic teller machines (ATMs) for paying bills and for making limited purchases of goods such as tickets is known in the art. Likewise, dedicated kiosks similar in function to ATMs are known for facilitating the sale and/or delivery of goods such as airline tickets. Giselle""s Travel Bureau, for example, has implemented a system where travel reservations are made by telephone, and tickets can subsequently be claimed at a remote, dedicated machine. Similarly, a company called Docunet has established a practice wherein customers make travel bookings over the phone or Internet, for airline tickets that are subsequently picked up at ATMs.
The above-described ATM systems and dedicated kiosks provide the advantage of permitting some flexibility in location for payment and for pick-up of goods. However, to the best knowledge of applicants, they are very limited in their scope of usexe2x80x94that is they are limited to a relatively small selection of goods/services. They are also limited in their options for payment, typically accepting only credit account information or codes indicating a pre-payment has been made.
There thus exists a need in the art for a retail system and process which provides consumers with the vast selection of goods available through catalog marketers, combined with the flexibility of payment options proffered by retail stores. Such a system and process should desirably offer the convenience of home shopping available through the use of catalogs, and the further convenience of flexible payment options at favored retail stores.
An object of the present invention is to provide a new and improved system and method for facilitating a payment for remotely purchased goods at a local point-of-sale system.
Another object of the invention is to provide a system and method for enabling buyers to pay for a catalog purchase without necessitating the use of a credit card or a mailed payment.
In accordance with one embodiment of the present invention there is provided a method and system for processing a payment for a purchase of goods by a local seller, the method including the step of inputting a code relating to a purchase of goods into a point-of-sale system. The code is processed to determine if it identifies local goods or remote goods to be purchased from and controlled by a remote seller. If the processing step identifies remote goods, then a price is determined for the remote goods, data is generated to indicate a payment has been received for the remote goods, and data indicating that the payment has been received for the remote goods is transmitted for use by a remote seller.
In accordance with another embodiment of the invention, a method and system for a remote seller to process a payment for a sale of goods is provided, the method including the step of receiving a remote order for a purchase of goods. A code and a purchase price are generated for the order. Order data is provided for use by a point-of-sale system of a local seller in receiving a payment for the order. Payment data is received confirming the payment has been paid by the consumer at the point-of-sale system of the local seller, and, responsive to receiving the payment data, the goods are shipped. Payment is subsequently received for the order from the local seller.
In yet another embodiment of the invention, a method and system of processing a payment for a sale of goods by a processor merchant is provided, the method including the step of receiving, from a remote seller, data relating to an order for goods. Next there is received, from a local seller, data indicating a payment has been received at a point-of-sale system for the order for goods. The processor then transmits to the remote seller data indicating that the payment has been received by the local seller, whereby to initiate the delivery of the goods by the remote seller.
In another embodiment of the invention there is provided a method for a customer to submit a payment for a purchase of goods, including the step of transmitting an order for the purchase of goods to a remote merchant. The customer receives a code and a purchase price for the order from the remote merchant, and provides at least one of the code and the purchase price for use by a point-of-sale system of a local seller in processing the payment for the order. Payment is submitted to the local seller at the point-of-sale system, and the goods are received from the remote merchant.